The US Department of Health and Human Services has two new short briefs out today assembling the most recent research and reports on the economic impact of Medicaid expansion across the country. The data on the huge drop in uncompensated care costs among hospitals is particularly startling. The reports also note recent overall economic impact studies. Key findings include:

1.  Hospitals in Medicaid expansion states have seen an average 26% drop in their uncompensated care costs compared to a 16% drop in non-expansion states. Overall hospitals are treating many fewer uninsured people, but the drop in Medicaid expansion states is huge – over one-quarter of costs. We’ll have to wait for more data but I can’t help thinking about how much of a positive effect this is on hospital finances in expansion states. Does this translate into things like more nurses in the hospital and enable hospitals to invest in more quality care for everyone?

2.  The overall picture of research so far on Medicaid expansion shows positive impacts on poverty reduction and state economies in general. For example, the authors cite the recent Deloitte Kentucky study on Medicaid expansion showing the state having the second largest decrease in the nation in its uninsured rate coupled with creation of 12,000 jobs in SFY 2014 alone. Also brought together is the comprehensive research so far in multiple state studies showing positive economic impacts.

That helping millions of people get health coverage and finally start paying their bills has a positive impact on health providers and states in general shouldn’t be a surprise. But in the ideologically charged Medicaid debate sometimes what should seem obvious becomes just one more steep hill for a cyclist to climb. Recently an economist from Brigham Young University – responding to some of this naysaying around the Medicaid expansion debate in Utah – had a good response to this denial of the obvious argument: “Imagine someone saying that when tourists spend their money in our state, their purchases end up costing us jobs and hurting our economy. Who would believe that?“ Exactly.